790+ Indian Economy Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Arts (BA) , Bachelor of Arts in Economics (BA Economics) , Union Public Service Commission (UPSC) .

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451.	National income ignores [CDS 2012]
A.	sales of firm
B.	salary of employees
C.	exports of the IT sector
D.	sale of land
Answer» B. salary of employees

452.	An individual's actual standard of living can be assessed by [SSC Grad 2011]
A.	Gross National Income
B.	Net National Income
C.	Per Capita Income
D.	Disposable Personal Income
Answer» D. Disposable Personal Income

453.	Consider the following statements about Sinking Fund: 1. It is a method of repayment of public debt. 2. It is created by the government out of budgetary revenues every year. Which of the statements given above is/are correct? [CDS 2011]
A.	1 only
B.	2 only
C.	Both 1 and 2
D.	Neither 1 nor 2
Answer» C. Both 1 and 2

454.	Which one among the following is not a component of fiscal policy? [Asstt Commdt 2011]
A.	Taxation policy
B.	Public debt policy
C.	Trade policy
D.	Public expenditure policy
Answer» C. Trade policy

455.	The total value of goods and services, produced' in a country during a given period is [CPO SI 2011]
A.	Disposable income
B.	National income
C.	Per capita income
D.	Net national income
Answer» B. National income

456.	In the context of Indian economy, consider the following statements: 1. The growth rate of GDP has – steadily increased in the last five years. 2. The growth rate in per capita income has steadily increased in the last five years. Which of the statements given above is/are correct? [CSAT2011]
A.	1only
B.	2 only
C.	Both 1and 2
D.	Neither 1 nor 2
Answer» D. Neither 1 nor 2

457.	Economic growth is usually coupled with [CSAT 2011]
A.	deflation
B.	inflation
C.	stagflation
D.	hyperinflation
Answer» B. inflation

458.	In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth Games in India amounted to [CSAT 2011]
A.	Export
B.	Import
C.	Production
D.	Consumption
Answer» A. Export

459.	Which one of the following statements appropriately describes the "fiscal stimulus"? [CSAT 2011]
A.	It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth
B.	It is an intense affirmative action of the Government to boost economic activity in the country
C.	It is Government's intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation
D.	It is an extreme affirmative action by the Government to pursue- its policy of financial inclusion
Answer» B. It is an intense affirmative action of the Government to boost economic activity in the country

460.	Consider the following actions which the Government can take: 1. Devaluing the domestic currency. 2. Reduction in the export subsidy. 3. Adopting suitable policies which attract greater FDI and more funds from FIIs. Which of the above action/actions can help in reducing the current account deficit? [CSAT 2011]
A.	1 and 2
B.	2 and 3
C.	3 only
D.	1 and 3
Answer» D. 1 and 3

461.	A rapid increase in the rate of inflation is sometimes attributed to the "base effect" What is "base effect"? [CSAT 2011]
A.	It is the impact of drastic deficiency in supply due to failure of crops
B.	It is the impact of the surge in demand due to rapid economic growth
C.	It is the impact of the price levels of previous year on the calculation of inflation rate
D.	None of the statements (a), (b) and (c) given above is correct in this context
Answer» C. It is the impact of the price levels of previous year on the calculation of inflation rate

462.	Which one of the following is not a feature of "Value Added Tax"? [CSAT 2011]
A.	It is a multi-point destination-based system of taxation
B.	It is a tax levied on value addition at each stage of transaction in the productiondistribution chain
C.	It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer
D.	It is basically a subject of the Central Government and the State Governments are only a facilitator for its Successful implementation
Answer» D. It is basically a subject of the Central Government and the State Governments are only a facilitator for its Successful implementation

464.	The first estimate of national income in India was made by:
A.	Mahalanobis
B.	V.K.R.V. Rao
C.	Dadabhai Naoroji
D.	Prof. Sheroi
Answer» C. Dadabhai Naoroji

466.	Which of the following is correct regarding the Gross Domestic Saving In India? [Asstt Grade 1992]
A.	Contribution of Household sector is the largest
B.	Contribution of Government sector is the largest
C.	Contribution of Corporate sector is the largest
D.	None of these
Answer» A. Contribution of Household sector is the largest

468.	National income is the same as:
A.	Net Domestic Product at market price
B.	Net Domestic Product at cost factor
C.	Net National Product at market price
D.	Net National Product at factor cost
Answer» D. Net National Product at factor cost

463.	The National Income is more at current prices than at constant prices because: [CDS 1992]
A.	increase in price is equal to increase in production
B.	increase in price is more than production
C.	increase in production is more than increase in price
D.	of decrease in production only
Answer» C. increase in production is more than increase in price

465.	The per capita income is obtained by:
A.	summing up the income of all the citizens of the country
B.	dividing national income by the population
C.	estimating the minimum income of individual citizens
D.	dividing the total national capital with the profit earned
Answer» B. dividing national income by the population

467.	Which of the following is not required while computing Gross National Product (GNP)? [Asstt Grade 1992]
A.	Net foreign investment
B.	Private investment
C.	Per capita income of citizens
D.	Purchase of goods by government
Answer» C. Per capita income of citizens

469.	The sum total of incomes received for the services of labour, land or capital in a country is called:
A.	gross domestic product
B.	national income
C.	gross domestic income
D.	gross national income
Answer» B. national income

470.	Which of the following is not shared by the Centre and the States?
A.	Sales Tax
B.	Corporation Tax
C.	Income Tax
D.	Union Excise Duties
Answer» A. Sales Tax

471.	Which of the following taxes is not levied by the Union Government?
A.	Wealth Tax
B.	Excise Duty
C.	Profession Tax
D.	Income Tax
Answer» C. Profession Tax

472.	The principal source of revenue to the State Government in India is :
A.	Income Tax
B.	Sales Tax
C.	State Excise Duties
D.	Land Revenue
Answer» B. Sales Tax

473.	Which of the following is an indirect tax?
A.	Corporation Tax
B.	Excise Duty
C.	Wealth Tax
D.	Capital Gains Tax
Answer» B. Excise Duty

474.	Which Agriculture export item is second in case of India?
A.	Marine product
B.	Rice
C.	Sugar
D.	Oil cake
Answer» B. Rice

475.	The performance of which of the following industries is considered performance of the core industry? [RBI Grade B Officer 2011]
A.	Garments
B.	Leather
C.	IT
D.	Oil and Petroleum
Answer» D. Oil and Petroleum

790+ Indian Economy Solved MCQs

National income ignores [CDS 2012]

An individual's actual standard of living can be assessed by [SSC Grad 2011]

Consider the following statements about Sinking Fund: 1. It is a method of repayment of public debt. 2. It is created by the government out of budgetary revenues every year. Which of the statements given above is/are correct? [CDS 2011]

Which one among the following is not a component of fiscal policy? [Asstt Commdt 2011]

The total value of goods and services, produced' in a country during a given period is [CPO SI 2011]

In the context of Indian economy, consider the following statements: 1. The growth rate of GDP has – steadily increased in the last five years. 2. The growth rate in per capita income has steadily increased in the last five years. Which of the statements given above is/are correct? [CSAT2011]

Economic growth is usually coupled with [CSAT 2011]

In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth Games in India amounted to [CSAT 2011]

Which one of the following statements appropriately describes the "fiscal stimulus"? [CSAT 2011]

A rapid increase in the rate of inflation is sometimes attributed to the "base effect" What is "base effect"? [CSAT 2011]

Which one of the following is not a feature of "Value Added Tax"? [CSAT 2011]

The National Income is more at current prices than at constant prices because: [CDS 1992]

The first estimate of national income in India was made by:

The per capita income is obtained by:

Which of the following is correct regarding the Gross Domestic Saving In India? [Asstt Grade 1992]

Which of the following is not required while computing Gross National Product (GNP)? [Asstt Grade 1992]

National income is the same as:

The sum total of incomes received for the services of labour, land or capital in a country is called:

Which of the following is not shared by the Centre and the States?

Which of the following taxes is not levied by the Union Government?

The principal source of revenue to the State Government in India is :

Which of the following is an indirect tax?

Which Agriculture export item is second in case of India?

The performance of which of the following industries is considered performance of the core industry? [RBI Grade B Officer 2011]

Which of the following agencies has the power to declare any industrial unit as a potentially sick unit? [CDS 2000]

The most important small-scale industry in India is that of:

UTI has been divided into two parts UTI-I and UTI-II. Which part has been kept under the control of the government?

Which part of separated UTI is under SEBl's regulation?

Which of the following is not sponsor of newly established UTI-II?

The largest importer country of Indian textile is :

Indian Railways revenue from:

Which industry earns the second highest, net foreign exchange from the trade?

Which of the following measures is not likely to help in improving India's balance of payments position?

In India, maximum number of workers are employed in :

After textiles, India's second important industry is :

India's oldest iron and steel plant is : [Intelligence Bureau 1991]

Which industry in India was worst affected because of the partition? [PCS 1994]

Which of the following industries was started first in India?

Which of the following states ranks first in terms of the maximum number of agrobased industries? [Bank PO 1993]

In which of the following industries is the maximum number of women employed in India? [CDS 1993]

Which of the following is the largest (in terms of' turnover) Public Sector organisation in India?

Under perfect competition: [GIC AAO 1993]

India earns maximum foreign exchange from the export of:

Bokaro Steel Limited was established with the assistance of: [Asstt Comm 2008]

Consider the following statements: [NDA 2003] 1. The first newsprint plant set up in India was at Nepanagar. 2. The first modern steel plant in India was set up at Bhadrawati. Which of these statements is/are correct?

Identify the correct sequence of the establishment of steel plants in India from the earliest to the latest: [NDA 2002]

The following is the list of four integrated steel plants in the country [CDS 1991] 1. Bhilai 2. TISCO 3. IISCO 4. Bokaro Which of the following combinations lists all the plants in the public sector ?

Consider the following statements about Sinking Fund:
1. It is a method of repayment of public debt.
2. It is created by the government out of budgetary revenues every year.
Which of the statements given above is/are correct? [CDS 2011]

In the context of Indian economy, consider the following statements:
1. The growth rate of GDP has – steadily increased in the last five years.
2. The growth rate in per capita income has steadily increased in the last five years.
Which of the statements given above is/are correct? [CSAT2011]

476.	Which of the following agencies has the power to declare any industrial unit as a potentially sick unit? [CDS 2000]
A.	BIFR
B.	MRTPC
C.	FICCI
D.	IRBI
Answer» A. BIFR

477.	The most important small-scale industry in India is that of:
A.	textiles
B.	jute
C.	jewellery
D.	handloom
Answer» D. handloom

478.	UTI has been divided into two parts UTI-I and UTI-II. Which part has been kept under the control of the government?
A.	UTI-I
B.	UTI-II
C.	Both the above
D.	None of the above
Answer» A. UTI-I

479.	Which part of separated UTI is under SEBl's regulation?
A.	UTI-I
B.	UTI-II
C.	Both the above
D.	None of the above
Answer» B. UTI-II

480.	Which of the following is not sponsor of newly established UTI-II?
A.	Punjab National Bank
B.	General Insurance Corporation
C.	Life Insurance Corporation of India
D.	State Bank of India
Answer» B. General Insurance Corporation

481.	The largest importer country of Indian textile is :
A.	Italy
B.	Germany
C.	Singapore
D.	USA
Answer» D. USA

482.	Indian Railways revenue from:
A.	passenger fare
B.	freight
C.	traffic tax
D.	passenger tax
Answer» B. freight

483.	Which industry earns the second highest, net foreign exchange from the trade?
A.	Gems and ornaments
B.	Textile industry
C.	Steel industry
D.	Engineering goods industry
Answer» D. Engineering goods industry

484.	Which of the following measures is not likely to help in improving India's balance of payments position?
A.	Devaluation of the rupee
B.	Encouragement of import substitution
C.	Imposition of higher duty on imports
D.	Imposition of higher duty on exports
Answer» D. Imposition of higher duty on exports

485.	In India, maximum number of workers are employed in :
A.	textile industry
B.	iron and steel industry
C.	petrochemical industry
D.	automobile industry
Answer» A. textile industry